Amazon is secretly building an 'Uber for trucking' app, setting its sights on a massive $800 billion market

Amazon is building an app that matches truck drivers with shippers, a new service that would deepen its presence in the $800 billion trucking industry, a person with direct knowledge of the matter told Business Insider.

The app, scheduled to launch next summer, is designed to make it easier for truck drivers to find shippers that need goods moved, much in the way Uber connects drivers with riders. It would also eliminate the need for a third-party broker, which typically charges a commission of about 15% for doing the middleman work.

 

The app will offer real-time pricing and driving directions, as well as personalized features such as truck-stop recommendations and a suggested "tour" of loads to pick up and drop off. It could also have tracking and payment options to speed up the entire shipping process.

This is the latest in Amazon's rumored plan to become a full-scale logistics company that controls the entire delivery cycle. Over the past year, Amazon has purchased thousands of trailer trucks and dozens of cargo planes while launching new "last mile" services like Amazon Flex that take packages straight to the end customer.

 

But the broader goal is to improve the "middle mile" logistics space, which is largely controlled by third-party brokers that charge a hefty fee for handling the paperwork and phone calls to arrange deliveries between shipping docks or warehouses. It would make shipping more efficient and cheaper not just for its customers but also for Amazon, which has been dealing with rising shipping costs lately.

 

The new service would put Amazon squarely in competition with numerous startups in this space, such as Convoy and Trucker Path, while putting a direct hit on incumbent players, including the publicly listed ones like C.H. Robinson and J.B. Hunt. Amazon is a customer of C.H. Robinson, while CEO Jeff Bezos is an investor in Convoy.

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